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Gartner 2025 CMO Spend Survey Reveals Marketing Budgets Have Flatlined at 7.7% of Overall Company Revenue

1. CMOs report stagnant marketing budgets at 7.7% of revenue for 2025. 2. 59% of CMOs feel insufficient budget to execute strategies effectively. 3. AI and data analytics are prioritized to enhance productivity amidst flat budgets. 4. 39% of CMOs plan to cut spending on agency relationships and labor. 5. GenAI investments yield significant ROI through time and cost efficiencies.

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FAQ

Why Bullish?

Investment in AI and data analytics indicates continued growth potential despite budget constraints. Historical cases, like increased tech adoption during economic downturns, show tech stocks often benefit.

How important is it?

The focus on AI and data analytics reflects a strong industry trend influencing tech demand. This pattern suggests potential growth avenues for IT companies involved in marketing tech.

Why Short Term?

Immediate effects expected as CMOs pivot to AI-driven strategies, potentially increasing tech sector demand in the near term.

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-CMOs Pursue Productivity Gains As Marketing Budgets Stagnate STAMFORD, Conn.--(BUSINESS WIRE)--CMOs report that their marketing budgets for 2025 remain flat at 7.7% of overall company revenue, according to a survey by Gartner, Inc. This is consistent with last year when marketing budgets represented 7.7% of overall company revenue (see Figure 1). The annual Gartner 2025 CMO Spend Survey was conducted February through March 2025 among 402 CMOs and other marketing leaders in North America, the United Kingdom and Europe across different industries, company sizes and revenue, with the vast majority of respondents reporting annual revenue of over $1 billion. Gartner experts revealed the findings today during the Gartner Marketing Symposium/Xpo, which is taking place in London. “While marketing budgets have stabilized, marketing spending has stalled at a level that falls short for many CMOs," said Ewan McIntyre, VP Analyst and Chief of Research in Gartner Marketing Practice. "Given the looming macroeconomic uncertainties, CMOs are now confronting the prospect of in-year budget cuts." With Budgets Stagnant, CMOs Seek Productivity Gains Through AI and Data Fifty-nine percent of CMOs report they have insufficient budget to execute their strategy in 2025, down by five percentage points since 2024. Although budgets have failed to grow year-on-year, marketing leaders appear to be using their funds in a more productive way. Top actions taken to boost productivity include leveraging data and analytics to optimize performance and harnessing technology such as AI to automate key tasks (see Figure 2). GenAI investments are delivering ROI through improved time efficiency (49%), improved cost efficiency (40%) and improving capacity to produce more content and/or handle more business (27%). Just 1% of CMOs said GenAI investments are not currently a priority. “With limited funds, marketing leaders are boosting productivity in order to drive growth,” said McIntyre. “CMOs are leveraging data analytics and technology, particularly AI, in order to squeeze more from static budgets.” CMOs Prioritize Paid Media Over Martech, Labor and Agencies Paid media continues to dominate marketing spend, accounting for 30.6% of marketing budgets or 2.4% of company revenue. However, media price inflation means CMOs are getting less for every dollar spent. As CMOs benefit from AI-driven productivity gains, many are making cuts to labor and agencies. Thirty-nine percent of CMOs plan to cut back on agency budgets, and top actions to save agency costs include eliminating unproductive agency relationships and streamlining agency rosters, followed by renegotiating agency contracts and scopes of work. Twenty-two percent of CMOs said GenAI has enabled them to reduce their reliability on external agencies for creativity and strategy building. Similarly, 39% of CMOs seek to reduce spending on labor, with top cost-saving actions including simplifying overlapping roles and reducing total headcount. Gartner clients can read more in Insights From the 2025 CMO Spend Survey. About Gartner for Marketers Gartner for Marketing provides the objective, expert advice, and proven tools that CMOs and other marketing leaders need to seize the right opportunities with clarity and confidence, and to stay ahead of the trends that matter. With in-depth research and analysis, Gartner for Marketing helps you focus on the opportunities with the greatest potential to deliver results. More information on Gartner for Marketing is available online at www.gartner.com/marketing. Follow news and updates from the Gartner Marketing practice on X and LinkedIn using #GartnerMKTG. Members of the media can find additional information and insights in the Gartner Marketing Newsroom. About the Gartner Marketing Symposium/Xpo The Gartner Marketing Symposium/Xpo is taking place May 12-13 in London and June 2-4 in Denver, providing marketing leaders with actionable advice about the trends, tools and emerging technologies they need to deliver business results. Follow news and updates coming out of the conference on the Gartner Newsroom and on X and LinkedIn using #GartnerMKTG. About Gartner Gartner, Inc. (NYSE: IT) delivers actionable, objective insight that drives smarter decisions and stronger performance on an organization’s mission-critical priorities. To learn more, visit gartner.com. More News From Gartner, Inc.

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